3 Stocks With Recent Intensive Insider Buying

|
 |  Includes: CETEF, FCH, SBY
by: Markus Aarnio

Since my December 31, 2012 article titled "3 Stocks With Recent Intensive Insider Buying", the stocks that I featured in the article have performed as follows:

Company Price 12/28 Price 3/11 Change
AMRS $2.45 $2.91 +18.8%
CFIS $1.06 $1.15 +8.5%
TAT $0.83 $1.02 +22.9%
Click to enlarge

In this article I will feature three additional stocks that have seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.
  2. The stock is sold by no insiders in the month of intensive purchasing.

  3. At least two purchasers increase their holdings by more than 10%.

1. FelCor Lodging Trust Incorporated (NYSE:FCH) is a publicly owned real estate investment trust. The firm engages in investment and management of properties in the hospitality industry.

Click to enlarge

Insider buying by insider (last 30 days)

  • Thomas Hendrick purchased 10,000 shares on March 7 and currently holds 69,700 shares or less than 0.1% of the company. Thomas Hendrick serves as a director of the company.
  • Robert Lutz purchased 3,000 shares on March 5-6 and currently controls 56,200 shares or less than 0.1% of the company. Robert Lutz serves as a director of the company.
  • Thomas Corcoran purchased 85,929 shares on February 21-25 and currently controls 642,707 shares or 0.5% of the company. Thomas Corcoran become Chairman of the Board in February 2006.
  • Jeffrey Symes purchased 19,850 shares on February 21-25 and currently holds 87,742 shares or less than 0.1% of the company. Jeffrey Symes is Senior Vice President, Chief Accounting Officer and Controller.
  • Glenn Carlin purchased 10,000 shares on February 21 and currently holds 60,000 shares or less than 0.1% of the company. Glenn Carlin serves as a director of the company.

Insider buying by calendar month

Here is a table of FelCor Lodging Trust's insider trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
March 2013 13,000 0
February 2013 115,779 0
January 2013 0 0
December 2012 0 0
November 2012 0 0
October 2012 0 0
September 2012 0 0
August 2012 4,100 0
July 2012 0 0
June 2012 220,000 0
May 2012 573,480 0
April 2012 0 0
March 2012 0 0
February 2012 0 0
Click to enlarge

The month of February 2013 has seen the most insider buying since May 2012.

Financials

The company reported the full year 2012 financial results on February 19 with the following highlights:

Revenue $909.5 million
Net loss $166.7 million
Cash $45.7 million
Debt $1.6 billion
Click to enlarge

Outlook

During 2013, the company anticipates:

  • Same-store RevPAR to increase between 5-6%;
  • Adjusted EBITDA to be between $186 million and $205 million;

  • Adjusted FFO per share to be between $0.31 and $0.43;

  • Net loss attributable to FelCor to be between $70 million and $63 million; and

  • Interest expense, including pro rata share of joint ventures, to be between $102 million and $106 million.

My analysis

The stock has a $8 price target from the Point and Figure chart. There have been five different insiders buying the shares and there have not been any insiders selling the shares during the last 30 days. The company has a book value of $3.17 per share. The 200 day moving average is currently at $4.70, which could be a good entry point for the stock.

2. Silver Bay Realty Trust Corp (NYSE:SBY) is a newly organized Maryland corporation focused on the acquisition, renovation, leasing and management of single-family properties. The company intends to elect and qualify to be taxed as a REIT for U.S. federal income tax purposes.

Click to enlarge

Insider buying by insider (last 30 days)

  • Irvin Kessler purchased 15,754 shares on March 5-7 and currently controls 2,113,943 shares or 5.4% of the company. Irvin Kessler serves as a director of the company.
  • Thomas Siering purchased 5,000 shares on March 6 and currently holds 30,000 shares or less than 0.1% of the company. Thomas Siering serves as a director of the company.
  • David Miller purchased 10,000 shares on March 4 and currently holds 22,500 shares or less than 0.1% of the company. David Miller is President and CEO of the company.

Insider buying by calendar month

Here is a table of Silver Bay Realty Trust's insider trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
March 2013 30,754 0
February 2013 0 0
January 2013 0 0
December 2012 367,250 0
Click to enlarge

The month of March 2013 has seen the most insider buying since December 2012.

Financials

The company reported the full year 2012 financial results on February 28 with the following highlights:

Revenue $3.6 million
Net loss $5.5 million
Cash $228.1 million
Click to enlarge

Outlook

Looking ahead, the company views 2013 as a period dedicated to laying the foundation to support future growth. The company's top three priorities for 2013 are: first, growth through a disciplined acquisition process; second, expanding operational capacity and efficiency in stabilizing properties; and third, adding financing alternatives to the capital structure. The company is finding compelling investment opportunities across all of its markets. Silver Bay will grow by continuing acquisitions in existing markets, expanding to new markets, and acquiring portfolios.

The company is currently acquiring approximately $40 million to $50 million in single family properties on a monthly basis or approximately 300 to 400 homes per month. This has primarily been on an individual basis at auction, through brokers, and in privately negotiated transactions, although the company is beginning to see an increasing number of small portfolios trade. The company is quite optimistic in its ability to acquire quality homes, both leased and vacant, that have been aggregated by smaller players and believes the industry will continue to consolidate.

My analysis

There have been three different insiders buying the shares and there have not been any insiders selling the shares during the last 30 days. There is one analyst buy rating, one neutral rating and zero sell ratings with an average target price of $21.00. The stock is trading at a forward P/E ratio of 39.88 and the company has a book value of $17.67 per share. The stock could be a good pick at the book value.

3. Cathedral Energy Services (OTC:CETEF) provides drilling and completions services to the oil and natural gas industry in western Canada, the United States, and Venezuela.

Click to enlarge

Insider buying by insider (last 30 days)

  • Cathedral Energy Services purchased 200,000 shares on March 8 and currently holds 200,000 shares or 0.5% of the company.
  • David Diachok purchased 10,000 shares on March 8 and currently holds 11,600 shares or less than 0.1% of the company. David Diachok is Vice President, Sales.
  • Scott MacFarlane purchased 10,000 shares on March 8 and currently holds 287,825 shares or 0.7% of the company. Scott MacFarlane has held the position of Chief Financial Officer of Cathedral Energy Services since April 2001.
  • Roderick Maxwell purchased 25,000 shares on March 8 and currently holds 125,000 shares or 0.3% of the company. Roderick Maxwell serves as a director of the company.
  • Randal Pustanyk purchased 5,000 shares on March 8 and currently holds 483,271 shares or 1.2% of the company. Randal Pustanyk has held the position Vice President, Operations of Cathedral Energy Services since June 2000.
  • Scott Sarjeant purchased 20,000 shares on March 8 and currently holds 260,420 shares or 0.7% of the company. Scott Sarjeant serves as a director of the company.

Insider buying by calendar month

Here is a table of Cathedral Energy Services' insider trading activity by calendar month.

Month Insider buying / shares Insider selling / shares
March 2013 270,000 0
February 2013 0 0
January 2013 0 0
December 2012 104,581 0
November 2012 538,296 0
Click to enlarge

The month of March 2013 has seen the most insider buying since November 2012.

Financials

The company reported the full year 2012 financial results on March 6 with the following highlights:

Revenue $203.2 million
Net income $14.8 million
Cash $8.5 million
Debt $47.7 million
Click to enlarge

Outlook

On a year-over-year basis, 2013 overall industry activity levels are expected to remain relatively flat over 2012. Within the Canadian market, industry experts are projecting the oil price differential to narrow in the second half of 2013 which should lead to more dollars in the hands of producer and this may result in increased funding for drilling and completions programs. So far in 2013, industry activity levels in Canada are at lower levels than the prior year. This is expected as the industry did not experience the overall decline in market activity until after the 2012 spring breakup.

The company continues to see significant opportunities in the U.S. market for both directional drilling and frac flowback services; in particular in the Texas and Oklahoma regions where the company's market share is minimal. In late 2012, Cathedral's U.S. Directional Drilling division opened an operations base in Oklahoma City, Oklahoma and for 2013 the company is expecting to experience an expanding work base from this area. For 2013 Cathedral is planning for increased activity levels from its Texas and Rocky Mountain regions. Despite being in a dry gas market, Cathedral's north east U.S. (Marcellus) area is expected to remain flat from an activity level basis.

My analysis

There have been six different insiders buying the shares and there have not been any insiders selling the shares during the last 30 days. The company has a 6% insider ownership. There are five analyst buy ratings, five neutral ratings and zero sell ratings with an average target price of $6.00. The stock is trading at a P/E ratio of 5.45 and a forward P/E ratio of 6.16. The company has a book value of $3.50 per share and the stock has a dividend yield of 7.60%. The stock could be a good pick at the book value.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in FCH over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.